UK regulator recommends changes to infant formula market

(Sharecast News) - The UK regulator has proposed a series of reforms to the infant formula market, including using plain packaging in hospitals and strengthening advertising rules, it was announced on Friday. Following a year-long investigation into the market, after accusations of high prices and limited choice, the Competition and Markets Authority found a combination of factors was leading to "poor outcomes" for parents.

In particular, it said families could save around £300 a year by switching to a cheaper brand without losing any nutritional benefits.

Sarah Cardell, chief executive of the CMA, said: "Many [parents] pick a brand at a vulnerable moment, based on incomplete information, often believing that higher prices must mean better quality. This is despite NHS advice stating that all brands will meet your baby's nutritional needs, regardless of brand or price.

"Our proposals are designed to help parents make the best choices for them and their babies.

"Our proposals will also make it easier for regulations to be property enforced, while ensuring manufacturers and retailers can be more confident in what they can and can't do according to law."

One of its core recommendations is removing brand influence in healthcare settings.

Formula manufactures - including Aptamil-owner Danone and Nestle, owner of SMA - are already heavily restricted in the UK when it comes to the advertising and promotion of baby milk, as part of wider attempts to encourage breastfeeding.

They therefore place "significant emphasis" on building brand awareness to secure customers instead, the CMA found.

The CMA has therefore recommended that when formula is given in healthcare settings, labelling should be standardised, either though non-branded containers or a white label formula specifically for the NHS.

It also recommended strengthening labelling and advertising rules.

"Claims that are intangible, or cannot easily be checked by parents, should be banned," the CMA said. "Like infant formula, advertising - including price promotions and deals - for follow-on milks should be banned."

Companies are currently banned from advertising baby formula as an alternative to breastfeeding, but are allowed to promote so-called "follow-on" products from six months.

The CMA opted against putting a price cap on formula, however, as it warned it could push up the prices of cheaper formulas as well as disincentivising breastfeeding.

But it said parents should be allowed to use vouchers, loyalty points and other coupons to buy formula. Breast feeding rates are lower among parents on lower incomes, meaning they are disproportionately affected.